This blog publishes market news relating to the companies listed in Bursa Malaysia, as well as business news in general. You can search and find all the past market and business news by searching within this Blog.

Friday, July 8, 2011

BCorp aborts special dividend as it privatises Cosway HK

KUALA LUMPUR: BERJAYA CORPORATION BHD [] has aborted the proposals including a special dividend after it decided to go ahead and privatise its Hong Kong-listed Cosway Corp Ltd (CCL), after listing it about two years ago.

The corporate exercise then had included the issuance restricted non-renounceable offer for sale by CCL of HK$491.56 million loan stocks to BCorp shareholders.

'On behalf of the board of BCorp, we wish to inform that as a consequence of the proposed privatisation, the company has aborted the proposals,' BCorp said on Friday, July 8.

On Thursday, BCorp, which owns 55.47% or 2.615 billion shares in CCL out of the 4.715 billion shares, said the exercise would be at a cash consideration of HK$1.10 or 42 sen per ordinary share of HK$0.20 each in CCL shares and HK$1.10 per HK$0.20 nominal amount of irredeemable convertible unsecured loan securities (CCL ICULS).

BCorp also owns 6.837 billion CCL ICULS, which are convertible into 6.837 billion new CCL Shares.

At HK$1.10 per share, BCorp is valuing the company at HK$5.19 billion. The remaining 44.53% or 2.1 billion shares it does not own is valued at HK$2.31 billion.